China Southern set for capital injection

China Southern has suspended trading of its shares in Hong Kong ahead of an expected capital injection by the Chinese Government.

5th Jun 2012


China Southern has suspended trading of its shares in Hong Kong ahead of an expected capital injection by the Chinese Government.

China  Southern  Air  Holding  said in a statement to the Hong Kong Stock Exchange that it is, "currently  considering  to  inject  capital  including state-owned capital operation budget allocation to the Company  to reduce the asset-to-debt  ratio  of  the  Company,  and  the  Company  is  currently  considering to  conduct  a  non public  issue  of  new shares  to CSAHC."

China Southern says: "The  above matters will  be subject  to further  policy  consultation with and proposal review by  the relevant government authorities from the date of  this announcement, therefore there are uncertainties over the relevant issues."

Trading of shares is expected to resume within five days.
 

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